Stonepath Group Teams With Mass Financial
February 12 2007 - 11:54PM
PR Newswire (US)
SEATTLE, Feb. 12 /PRNewswire-FirstCall/ -- Stonepath Group
(AMEX:STG), a global logistics services organization, today
announced a new strategic relationship with Mass Financial Corp.,
an international merchant bank with diverse global relationships,
that will provide capital for Stonepath to expand its business in
Asia and North America. Mass Financial has purchased Stonepath's
entire credit facility from Laurus Master Fund, Ltd. "During the
past few months, we have streamlined our North American operations
and worked to restructure our debt," stated Bob Arovas, Chief
Executive Officer. "Our new backing from Mass Financial will give
us the financial resources needed to return our focus to expanding
our core business - providing customer-focused logistics and
transportation services. Together, we will work to expand our
already extensive presence in China and Southeast Asia, and improve
our existing link with North America. Additionally, we believe the
arrangement will provide us with the flexibility to explore new,
high-growth markets and industry segments." Based in Hong Kong,
Mass Financial and its affiliated companies have global investments
in industrial and engineering services, merchant banking, investing
and trading activities. "We appreciate the support of our
customers, vendors and employees shown during our restructuring,"
Arovas said. "With their cooperation and support, we believe we
will emerge as a focused, customer-centric organization. Now,
together with Mass Financial, we should have the capital structure
to properly execute the strategic objectives of Stonepath while
optimizing the logistics capabilities of our customers." About
Stonepath Group Stonepath Group is a global, third-party logistics
organization providing a full range of transportation and
distribution solutions to multinational and local businesses
including a diverse client mix of retail leaders, automotive and
technology concerns, government agencies, and defense contractors.
This Press Release includes forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended,
regarding future results, levels of activity, events, trends or
plans. We have based these forward- looking statements on our
current expectations and projections about such future results,
levels of activity, events, trends or plans. These forward- looking
statements are not guarantees and are subject to known and unknown
risks, uncertainties and assumptions about us that may cause our
actual results, levels of activity, events, trends or plans to be
materially different from any future results, levels of activity,
events, trends or plans expressed or implied by such
forward-looking statements. In some cases, you can identify
forward-looking statements by terminology such as "guidance,"
"may," "will," "should," "could," "would," "expect," "plan,"
"anticipate," "believe," "estimate," "continue" or the negative of
such terms or other similar expressions. Mass Financial's
obligation to advance funds to us is subject to satisfaction of
numerous conditions, and there is no guaranty that all of these
conditions will be satisfied. Although it is impossible to identify
all of the other factors that may cause our actual results, levels
of activity, events, trends or plans to differ materially from
those set forth in such forward-looking statements, such factors
include the inherent risks associated with: (i) our ability to
sustain an annual growth rate in revenue consistent with recent
results, (ii) our ability to achieve our targeted operating
margins, (iii) our ability to compute our restructuring efforts
within the costs we now expect, (iv) our ability to realize the
planned benefits from our restructuring efforts, (v) our dependence
on certain large customers, (vi) our dependence upon certain key
personnel, (vii) an unexpected adverse result in any legal
proceeding, (viii) competition in the freight forwarding, logistics
and supply chain management industry, (ix) the impact of current
and future laws affecting the Company's operations, (x) adverse
changes in general economic conditions as well as economic
conditions affecting the specific industries and customers we
serve, and (xi) regional disruptions in transportation. Other
factors that might cause or contribute to such a discrepancy
between expected and actual results include, but are not limited
to, those factors identified in our Securities and Exchange
Commission filings (including our Annual Report on Form 10-K for
2005), other public documents and recent press releases, which can
be found on our corporate web site, http://www.stonepath.com/.
Readers are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date made.
We undertake no obligation to publicly release the result of any
revision of these forward- looking statements to reflect events or
circumstances after the date they are made or to reflect the
occurrence of unanticipated events. http://www.stonepath.com/
DATASOURCE: Stonepath Group CONTACT: Jeff Meston, The Cereghino
Group, +1-206-802-3927 Web site: http://www.stonepath.com/
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